Biden Tax Plan Charts New Path to Economic Growth

Business groups and large corporations reacted negatively on Wednesday to President Biden’s expected proposal to fund his $2 trillion package of infrastructure spending with a substantial increase in corporate taxes.

The scale of the infrastructure program — the details of which Mr. Biden is expected to unveil later on Wednesday — is so big that is that it would require 15 years of higher taxes on corporations to pay for eight years of spending. The plans include raising the corporate tax rate to 28 percent from 21 percent. The corporate tax rate had been cut from 35 percent under former President Donald J. Trump.

The Business Roundtable said it supported infrastructure investment, calling it “essential to economic growth” and important “to ensure a rapid economic recovery” — but rejected corporate tax increases as a way to pay for it.

Policymakers should avoid creating new barriers to job creation and economic growth, particularly during the recovery,” the group’s chief executive, Joshua Bolten, said in a statement.

Be the first to comment

Leave a Reply

Your email address will not be published.


*